Private Equity & Shopping 10 Jan 2007 05:40 am

Could Private Equity Save The Gap?

by Sean Hackbarth

Gap logo

The way things are going any distressed company is rumored to be in the sights of a private equity firm. They’re buying things left and right why not The Gap (GPS), a clothing chain that’s a staple to America’s malls? The AP’s Michael Liedtke writes the company “generates lots of cash and retains a well-known brand.” Plus, a buyout firm could make some bucks splitting off Old Navy or Banana Republic. Liedtke points out private equity likes retail with Neiman Marcus and Toys “R” Us in firms’ hands.

The New York Times‘ DealBook reports doubt over a buyout. One reason being The Gap doesn’t have the real estate that could be sold to pay for the buyout.

Private equity isn’t the only money around. Ryan Donnell guesting at Investor Trip considers Limited Brands (LTD), owner of Victoria’s Secret, and VF Corp. (VFC) as possible buyers.

Financially The Gap is hurting. Off of poor Christmas sales its bonds have dropped to junk status. Texas Pacific, have any money left? Like khakis and t-shirts?


One Response to “Could Private Equity Save The Gap?”

  1. on 11 Jan 2007 at 12:16 am 1.TAM Money and Finance » 2007 » January » 11 said …

    [...] Recent Posts Cisco Sues Apple over iPhone NameCould Private Equity Save The Gap?Apple Announces iPhone, Dumps “Computers” from NameBest of the Carnival of the CapitalistsApple Rumored to Announce Cell PhoneRed Vs. Blue Investing [...]

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